02/04/2021

Introduction

Context and Motivation

  • Indian Economy today and our lives
  • A dynamic discourse
  • It counts to look back - why?
  • Deploy the knowledge from various branches of Economics - e.g. Macro, Micro, Development Economics, International Trade and definitely Statistics - to understand the reality of Indian Economy

Course Objectives

  • Know the current issues and problems facing Indian Economy
  • Is that all?
  • A multi-dimensional course involving hardcore economic theories, statistics on one hand and socio-political perspectives and complex narratives on the other hand
  • This course will help us understand (the nuances of) India’s `progress’ since independence
  • Where are we today and why are we here
  • Where do we go from here?

Course Content

Our Focus - Unit 1

  • Major features of the economy at independence;
  • Planning: Evolution of India’ development goals and strategies
  • Structural constraints and Indian development strategy:
  • Debates between growth and distribution,
  • Public Sector vs. Private Sector,
  • Consumer Goods vs. Capital Goods, -Import Substitution vs. Export promotion;
  • Growth and development under different policy regimes
  • Goals, constraints, institutions and policy framework;
  • an assessment of performance – sustainability and regional contrasts; structural changes, savings and investment including the saving-investment paradox.

Comparing Indian Economy with Other Countries

India v/s UK: A Long Term Perspective

Phase Wise Comparison between India and UK

Comparing India and China

Economic Progress and Development: An International Comparison

India at the Time of Independence

  • A dual economy (in the Lewisian sense)

  • 80 percent of the population residing in rural areas - surviving on subsistence agriculture and traditional household manufacturing catering to local needs

  • ``modern" sector – export oriented plantation crops (e.g. tea and coffee)

  • few port-based enclaves of large scale manufacturing (mostly cotton and jute goods) — Calcutta (Kolkata), Bombay (Mumbai), Madras (Chennai)

  • first half of 20th century – almost no growth in per-capita income except few islands of prosperity

  • social development – India at the bottom of the world league

India since Independence

India’s Economic Growth: A Long Term View

Economic Growth and Poverty Reduction in India

‘Successful’ Poverty Reduction

Source: Datt, Ravallion and Murgai (2016)

Sectoral Composition of Output (Base Year: 2004-05)

Sectoral Composition of Output (Base Year: 2011-12)

Sectoral Performance

Demand Side Analysis (1)

Demand Side Analysis (2)